Clarification on Penalties for Non-Compliance with Compulsory Deposit Scheme, 1974: Accounting and Procedural Guidance Issued.

Instruction No. 917/CBDT, dated February 5, 1976, addresses the imposition of penalties on taxpayers who fail to make Compulsory Deposits under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974. It clarifies the accounting classification for such penalties as "065- Other Administrative Service- Other Services - Other Receipts." The existing tax payment challan for non-company assessees should be used, with modifications to indicate the new classification. This instruction resolves queries raised by Commissioners of Income-tax in Tamil Nadu and Andhra Pradesh regarding the accounting and procedural aspects of these penalties.